Santa Clara County (SCC): Prices Keep Rising

Prices for both single-family, re-sale homes and condos jumped by double-digits in January, year-over-year.

The median price for homes has been higher than the year before by double-digits eight months in a row. The average price was up by double-digits for the seventh month in a row.

The median price for homes rose 25.2% over last January to $1,163,000. That was a small decline from the record high set in December.

This is also the 71st month in a row the median price has been higher than the year before.

The average price for homes rose 14.3% to $1,439,310.

The median price for condos gained 22.4%. Notably, the median price for condos has been higher than the year before every month since July of 2011!

The average price for condos was up 21.7% over last January.

Multiple offers continue to be the norm. The sales price to list price ratio, or what buyers are paying over what sellers are asking remains at triple digits: 108.8% for homes and 113.3% for condos. That’s the highest it has ever been for condos.

The ratio has been over 100% for homes since March 2012 and for condos since April 2012.

Homes and condos are flying off the shelf. It is taking only twenty-one days to sell a home, on average. Condos are taking twelve days.

All this is due to an incredible lack of inventory. Since January 2000, Santa Clara County has averaged 94 days of inventory. Last month it was twenty-five.

Condos have averaged 87 days since 2000. Last month it was eighteen.

As of January 5th, there were 376 homes and 91 condos for sale in Santa Clara County.

January 2018 Sales Statistics (SCC)

* Total inventory is active listings plus pending listings. Active listings do not include pending.

VISIT http://avi.rereport.com/ for a free on-line market analysis of your property. You can also perform your own personal search of properties for sale.

Getting Your Home Ready to Sell (SCC & SMC)

I know, I know. You’re thinking, “I live in Silicon Valley where everything is selling with multiple offers! Why bother fixing anything?”

Well, not quite. Well-kept homes properly priced ARE selling quickly with multiple offers. Yet, there are still homes that have been on the market for over thirty days. P.S. We are averaging twenty-one days on market.

Homes that have been on the market over thirty days are either over-priced and/or not spiffed up.

Well-maintained homes priced properly will receive multiple offers in this market. Also, a clean, well-kept home will sell for more money than one that is run down.

If you are ready to sell your home, we have some tips for you.

First, make sure people will be enticed into your home when they first look at it from their car. This is called curb appeal. The next time you drive up to your home, look at it as if you were thinking of buying it. What could you do to make it more appealing from the curb? Is the yard neat? The grass green? The bushes trimmed? The kid’s toys put away? Is the front door clean? The garage door? A little paint and elbow grease here ensures more people will visit your home.

Next, you know all those little niggling things you’ve been meaning to fix? The squeaky door. The door knob that doesn’t work properly. The closet door that slides roughly. Fix them!

Go for the spacious look. You are going to be moving, that’s why the house is on the market. Start packing. Pack everything but the essentials, then put them in storage. This goes for the kitchen as well. Take all those appliances and containers off the counter tops and pack them away.

Spruce up your back yard. The back yard has evolved into one of the most important rooms of the house. Buyers will be attracted to back areas that have a nice deck or patio area with plenty of space for dining, grilling, and entertaining. And if you have a section of your yard that is child-friendly — perhaps with a swing set, sandbox or play area — play it up as much as possible.

Make your windows sparkle. Make sure your windows are nice and clean.

Keep your walls light. If you’re thinking about touching up the paint on your walls before you put your home on the market, keep the colors neutral and light. A light yellow or beige will make the room feel cooler than darker hues, like brick red or dark taupe.

Let the light in. Open blinds and curtains so plenty of light illuminates the home’s interior.

Keep the pool clean. If you have a pool or spa, make sure it’s clean. If you have a fence, make sure locks and latches are working properly.

All this may seem like a lot of work, and it is, but it means a quicker sale with less hassle and more money in your pocket. Not to mention the pleasure you and your family will receive from living in a well-kept home.

To set the proper price, a seller must be aware of current market conditions, including what has sold recently in your neighborhood, and what is your competition.

Real Estate Matters. Representing both buyers and sellers: A conflict of interest? Read more Dual Agency

California homeowners interested in building accessory dwelling units on their property just caught a break, potentially shaving off thousands of dollars in fees and permits. In a move proponents say will help ease the Bay Area’s housing crisis, Gov. Jerry Brown on Tuesday signed Senate Bill 1069, making the so-called “granny units” easier and less expensive to build throughout the state.

Helpful resource for home owners

Many new home owners or owners who consider remodeling or rebuilding their homes should take advantage of their county Tax Assessor web site. These web site and their respective city building departments web site typically have vest information regarding the process for applying for permits, the impact on their taxes and many other resources that home owners should be aware are available for them. For the San Mateo County Tax Assessor office visit http://www.smcare.org/default.aspFor Santa Clara County Tax Assessor visit https://www.sccassessor.org/index.php

The Silicon Valley 150 Index Corner

The Silicon Valley’s Real estate market is a derivative of the local economy–it prospers and withers depending on how well the local innovation-based sector performs. The San Jose Mercury News tracks the performances of the largest 150 publicly traded companies headquartered in Silicon Valley through an index called the SV150, which may be found at www.mercurynews.com. Stocks are valued based on several criteria, but one of the more important criteria is a company’s future earnings. Therefore, I see the SV150 as a leading indicator for Silicon Valley’s real estate market.

Investors Corner

CITIES IN THE WEST: SEATTLE, LAS VEGAS AND SAN FRANCISCO LEAD GAINS IN S&P CORELOGIC CASE-SHILLER HOME PRICE INDICES

NEW YORK, January 30, 2018 – S&P Dow Jones Indices today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for November 2017 shows that home prices continued their rise across the country over the last 12 months. More than 27 years of history for these data series is available, and can be accessed in full by going to https://goo.gl/aPkcmX

Is it time to seriously consider investing in real estate?

San Mateo County (SMC): Prices Keep Rising

Prices for both single-family, re-sale homes and condos jumped by double-digits in January, year-over-year. The median price for homes has been higher than the year before by double-digits five months in a row. The average price was up by double-digits for the third month in a row. The median price for homes rose 26.1% over last January to $1,450,000. That is a $60,000 decline from the record high set in October. This is also the 22nd month in a row the median price has been higher than the year before. The average price for homes rose 21.2% to $1,760,780. The median price for condos gained 7.3%. The average price for condos was up 17.2% over last January. Multiple offers continue to be the norm. The sales price to list price ratio, or what buyers are paying over what sellers are asking remains at triple digits: 110.2% for homes and 107.9% for condos. The ratio has been over 100% for homes since April 2012 and for condos since June 2012. Homes and condos are flying off the shelf. It is taking only twenty-eight days to sell a home, on average. Condos are taking seventeen days. All this is due to an incredible lack of inventory. Since January 2003, San Mateo County has averaged 83 days of inventory. Last month it was thirty-seven. Condos have averaged 92 days since 2000. Last month it was forty. As of January 5th, there were 205 homes and 47 condos for sale in San Mateo County.

January 2018 Sales Statistics

* Total inventory is active listings plus pending listings. Active listings do not include pending.

Looking to Downsize?

Keep Your Property Tax Base

Under Proposition 60, California homeowners 55 and older get a one-time chance to sell their primary residence and transfer its property-tax assessment to a new one, but the market value of the new home generally must be equal to or less than the market value of the old home.

Prop. 60 was designed to help longtime California homeowners who want to downsize but don’t want to give up the low property-tax assessment they enjoy in their existing home.

Under Proposition 13, homes are reassessed for property-tax purposes when there is a change in ownership or new construction. In between ownership changes, the assessed value can go up by an inflation rate not to exceed 2% a year. (Homeowners can get temporary reductions when property values go down.)

Prop. 60 lets homeowners 55 or older transfer their base-year value from an existing primary residence to a new primary residence, but there are restrictions.

The new home must be in the same county as the old one or, as Proposition 90 added, in one of eleven counties that accept transfers of base-year value from other counties. The eleven counties are: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne and Ventura.

Also, the new home must be purchased or built within two years – before or after – the sale of the original property.

If the new house is purchased before the old house is sold, the market value of the new house on its purchase date cannot exceed 100% of the old home’s market value on the date it is sold.